Category: Press Releases and Statements

NFTC Statement on U.S.-Brazil Cotton Dispute Resolution

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Washington DC – The National Foreign Trade Council (NFTC) released the following statement from NFTC Vice President for Regional Trade Initiatives Chuck Dittrich regarding the announcement that the United States and Brazil have settled their longstanding dispute over U.S. cotton subsidies.

“The NFTC welcomes today’s announcement that after many years the United States and Brazil have come to an agreement to resolve the longstanding dispute over U.S. cotton subsidies.

“The NFTC and its members support WTO compliance, and we are encouraged to see that the U.S.-Brazil agreement contains adjustments to the U.S. cotton program to make it more WTO compliant in the long term, rather than just a short-term fix.

“While this issue has been resolved, the NFTC urges the Administration and Congress to work together to ensure all U.S. agricultural polices are in line with the rules-based global trading system, which the United States supports through the WTO.”

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About the NFTC
NFTC is Celebrating our New Century in 2014! Details at www.nftc.org The National Foreign Trade Council (www.nftc.org) is a leading business organization advocating an open, rules-based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC now serves hundreds of member companies through its offices in Washington and New York. Follow us on:

 

 

Investment in Ireland: A Success Story

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Washington DC.– On September 16, the National Foreign Trade Council (NFTC) gathered business leaders and government officials at an event to discuss the factors that have contributed to Ireland’s growing recovery. At the event, attended by Irish Ambassador to the United States Anne Anderson, participants welcomed Ireland’s continuing commitment to a competitive tax policy that supports business. However, concern was expressed that Ireland’s favorable business environment risks being undermined by erosions of intellectual property (IP) protections, such as the Irish government’s plain packaging proposal.

Leading off the event, Ambassador Anne Anderson noted that the pillars supporting Ireland’s exceptional foreign direct investment performance were the “Four T’s”: 1) Talent, 2) Tax, 3) Track Record and 4) Technology. In defense of Ireland’s corporate tax regime, the Ambassador commented, “We play fair, but we play to win … our 12.5 percent corporate tax rate is not in doubt.”

The Ambassador noted Ireland would carefully watch the ongoing work of the OECD on taxation, but commented that tax policy was Ireland’s “sovereign right.”

Panelist Chris Padilla of IBM noted that while tax was a key factor in making investment decisions, IBM invested in Ireland because “it is across the board a good place to do business.” Padilla also raised concern with the OECD’s BEPS project as “a way of getting countries to raise taxes.”

NFTC President Bill Reinsch moderated a discussion by a distinguished panel of business, academic and government representatives, including Chris Padilla of IBM, Jeff Schott of the Peterson Institute for International Economics, Christine Bliss of the Office of the U.S. Trade Representative (USTR) and Pat Howlin of the Industrial Development Authority (IDA), Ireland’s inward investment agency.

Pat Howlin of IDA commented that when considering investment decisions, multinational businesses seek “stability, certainty and confidence in the medium to long-term future.” Howlin highlighted the importance of balanced regulation: “Regulation is an important part of our efforts to promote business in Ireland, and it should not shackle business development.” When challenged on the plain packaging proposal, Howlin said that this was not his area of expertise but that he was aware of the government’s proposal.

Concerns were raised about Ireland’s protection of IP rights. NFTC President Bill Reinsch noted concerns raised by his members about a fifth “T” – trademarks – and Ireland’s proposed move regarding plain packaging of tobacco products: “The two issues that matter most are tax policy and intellectual property protection. IP protection is critical for attracting investment. It is the crown jewel of the American economy and key to our global competitiveness … As well as positive stories, Ireland also faces challenges … for example, Ireland’s proposal on plain packaging for tobacco products, which sends a negative signal to other industries contemplating investments.”

The panel also discussed the Transatlantic Trade and Investment Partnership (TTIP), a key focus of U.S. and EU economic policymakers. Christine Bliss of USTR noted that U.S. objectives in TTIP can complement Irish policies and highlighted Ireland’s leadership role in the negotiations. Jeff Schott of the Peterson Institute commented that while the TTIP agreement may create significant opportunities for U.S. and EU businesses, companies should not think it will enter into force anytime soon. Schott stated, “Businesses should integrate TTIP into their plans, but evaluate the agreement as a medium-term prospect at best.”

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About the NFTC
NFTC is Celebrating our New Century in 2014! Details at www.nftc.org The National Foreign Trade Council (www.nftc.org) is a leading business organization advocating an open, rules-based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC now serves hundreds of member companies through its offices in Washington and New York. Follow us on:

 

 

NFTC Applauds Short-Term Extension of Ex-Im Bank Charter as Positive Step, Calls for Reauthorization

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Washington DC – National Foreign Trade Council (NFTC) President Bill Reinsch today released the following statement on congressional passage of a nine-month extension of the Export-Import Bank (Ex-Im Bank) charter.
 
“NFTC applauds today’s passage of a short-term extension of the Ex-Im Bank charter, preventing the Bank’s authorization from lapsing at the end of this month, which would have negatively impacted the ability of U.S. exporters to compete in the global marketplace.
 
“The Bank has and continues to provide crucial support for U.S. exporters, especially small and medium-sized companies, in an increasingly competitive global market.
 
“While today’s extension is positive news, we urge Congress to act on long-term reauthorization as soon as possible rather than risk expiration again in nine months. Congress can ensure U.S. exporters have the support they need to continue to contribute to U.S. economic growth and job creation by passing a long-term reauthorization bill.”
 
In support of Ex-Im Bank reauthorization, NFTC joined a group of associations last week in sending a letter to Speaker of the House John Boehner, Senate Majority Leader Harry Reid, House Minority Leader Nancy Pelosi and Senate Minority Leader Mitch McConnell to stress the importance of the issue.

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About the NFTC
NFTC is Celebrating our New Century in 2014! Details at www.nftc.org The National Foreign Trade Council (www.nftc.org) is a leading business organization advocating an open, rules-based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC now serves hundreds of member companies through its offices in Washington and New York. Follow us on:

 

 

USA*Engage Opposes S. 2828, “Ukraine Freedom Support Act of 2014”

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Washington DC – USA*Engage Director Richard Sawaya issued the following statement today following the Senate Foreign Relations Committee’s passage of the Ukraine Freedom Support Act of 2014 (S. 2828).

“Russia’s actions in Ukraine are an immediate and pressing problem for the United States and the EU. To date, both the United States and the EU have not supplied Ukraine with military assistance. Instead, they have implemented increasingly draconian economic sanctions, targeting the Russian energy, defense and financial sectors. These sanctions have made little difference in Russian behavior toward Ukraine.

“S. 2828 is an understandable attempt by its proponents to provide U.S. military, financial and other assistance to Ukraine. But S. 2828 would also codify the executive branch sanctions that have been put in place, in effect freezing the status quo.

“Given the Russian response to the U.S. and EU sanctions, and the fact that sanctions have no connection to the provision of military, financial or other assistance that would presumably improve the Ukrainian government’s position vis-a-vis Russia, their inclusion in the legislation is most unfortunate. For this reason, USA*Engage opposes further congressional action on S. 2828 as reported by the Senate Foreign Relations Committee.

“In their present state, the U.S. and EU sanctions have not changed Russia’s behavior in Ukraine. Given Russia’s financial position, as well as its place in the global economy, there is little chance they will in the foreseeable future. On the other hand, the U.S. sanctions are exacting substantial collateral damage to U.S. investments and operations in Russia across sectors. At least, under the status quo, their rapid reversal remains possible should the situation on the ground in Ukraine change. It is difficult to see how their codification in law would facilitate resolution of the conflict between Kiev and Moscow.”

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About USA*Engage

USA*Engage (www.usaengage.org) is a coalition of small and large businesses, agriculture groups and trade associations working to seek alternatives to the proliferation of unilateral U.S. foreign policy sanctions and to promote the benefits of U.S. engagement abroad. Established in 1997 and organized under the National Foreign Trade Council (www.nftc.org), USA*Engage leads a campaign to inform policymakers, opinion leaders, and the public about the counterproductive nature of unilateral sanctions, the importance of exports and overseas investment for American competitiveness and jobs, and the role of American companies in promoting human rights and democracy worldwide.

The Hidden Cost Of Low Prices: Limited Access To New Drugs In India

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In support of its mission “to inspire, promote, encourage and facilitate international trade and investment in order to enhance economic growth and job creation throughout the world” the National Foreign Trade Council Foundation supports and conducts research and study on the problems and opportunities in international economics and foreign trade and investments. Following is a recent product.

India’s treatment of pharmaceutical patents has been a subject of much attention since its implementation of the WTO’s TRIPS Agreement through amendments in 2005 to India’s Patent Act. Professors Ernst R. Berndt (MIT) and Iain M. Cockburn (Boston Univ.) have recently contributed an article to Health Affairs entitled, “The Hidden Cost of Low Prices: Limited Access to New Drugs in India.”

Abstract: The pricing and accessibility of patent-protected drugs in low- and middle-income countries is a contentious issue in the global context. But questions about price have little meaning if a drug is not available for purchase, and the extent to which patent policy affects when (and if) new drugs become available in these countries has largely been overlooked. We examined data on the sales of 184 drugs approved by the US Food and Drug Administration between 2000 and 2009. We found that 50 percent of those 184 drugs went on sale in India only after lags of more than five years from their first worldwide introduction. More than half of the drugs that became newly available in India during the study period were produced and sold by multiple manufacturers in the country within one year of their introduction. The presence of multiple manufacturers indicates sharp competition and weak patent protection—factors that are disincentives to manufacturers to incur the costs of gaining access to the market. We conclude that modest patent and regulatory reform could bring the faster availability of a wider range of new drugs in India with limited impact on prices—a trade-off that merits greater policy attention.

The NFTC Foundation has secured a link to the full article for our website visitors. In order to view this article, you must access it from the link below:

The Hidden Cost Of Low Prices: Limited Access To New Drugs In India
http://content.healthaffairs.org/cgi/content/full/33/9/1567?ijkey=M0PodbO9SGfZc&keytype=ref&siteid=healthaff

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Reinsch: “WTO Reform Misses the Point”

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Washington DC – Yesterday, in a guest blog post for America’s Trade Policy, titled “WTO Reform Misses the Point,” National Foreign Trade Council President Bill Reinsch wrote:

“The failure of the Doha Round and the hopefully temporary setback in implementing the Bali Trade Facilitation Agreement has once again raised questions about the World Trade Organization’s viability. Once we get past blaming India (correctly) for the most recent disaster, attention will inevitably turn to the question of whether the WTO is up to the task of reaching agreements on complex trade issues and, if not, how to ‘fix’ it.

“Focusing on institutional reform is an attractive road to go down politically. It allows governments to postpone, if not ignore, the real trade issues that divide them, and it allows them to place blame on the organization itself or, at worst, their predecessors who created it, rather than on themselves. Tempting though that is, however, it is ultimately self-defeating because it only postpones the day of reckoning when difficult trade issues will have to be dealt with. It is also a dead end.

“… So what is the alternative? If the institution truly has become unwieldy, then one or both of two things is likely to happen. One is that those who are making it unwieldy will over time learn how to work within the system more diplomatically – in effect, learn how to behave – and the problem will gradually go away as the system adjusts. The second is that work-arounds emerge.”

Click here to read the full blog post.

 
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About the NFTC
NFTC is Celebrating our New Century in 2014! Details at www.nftc.org – The National Foreign Trade Council (www.nftc.org) is a leading business organization advocating an open, rules-based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC now serves hundreds of member companies through its offices in Washington and New York.Follow us on:

NFTC Statement on Reported Collapse of WTO Talks

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Washington, DC– National Foreign Trade Council (NFTC) Vice President for Global Trade Issues Jake Colvin released the following statement following reports that the World Trade Organization (WTO) has failed to advance the Trade Facilitation Agreement as mandated:

“Failure to advance the Trade Facilitation Agreement today would be a blow to the multilateral trading system.

“In the short term, we hope that the more than 150 members of the WTO who were committed to this outcome will seek to engineer a solution that permits this important agreement to move forward.

“More broadly, today’s developments suggest that there is little hope for truly global trade talks to take place. Businesses are multilateralists at heart, but they’re also pragmatic and will look to talks among smaller groups to achieve what now appears to be impossible among the entire membership of the World Trade Organization.

“The vast majority of countries who understand the importance of modernizing trade rules and keeping their promises need to pick up the pieces and figure out how to move forward in ways that avoid letting one country hold up shared progress.”

 
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About the NFTC
NFTC is Celebrating our New Century in 2014! Details at www.nftc.org – The National Foreign Trade Council (www.nftc.org) is a leading business organization advocating an open, rules-based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC now serves hundreds of member companies through its offices in Washington and New York.Follow us on:

NFTC Statement on Failure to Advance WTO Trade Facilitation Agreement

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Washington, DC – NFTC Vice President for Global Trade Issues Jake Colvin released the following statement in response to reports that negotiators in Geneva failed to advance the Trade Facilitation Agreement:

“Failure to advance the Trade Facilitation Agreement as promised would do lasting damage to the multilateral trading system.

“It is ironic that the very same countries who criticize exclusive trade negotiating groups, like the Trans-Pacific Partnership and Trade in Services Agreement, the loudest seem ready to ensure that those smaller groupings are the only viable paths forward for trade negotiators.

“While we hold out hope that the agreement will advance by unanimous consent prior to the July deadline set in Bali, we would urge negotiators of the overwhelming majority of countries who are committed to the Trade Facilitation Agreement and to improving economic development through the global trading system to engineer a path forward that salvages the credibility of the World Trade Organization.”

 

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About the NFTC

 
NFTC is Celebrating our New Century in 2014! Details at www.nftc.org – The National Foreign Trade Council (www.nftc.org) is a leading business organization advocating an open, rules-based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC now serves hundreds of member companies through its offices in Washington and New York.Follow us on: